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Nelson Gahadza Senior Business Reporter
The Securities and Exchange Commission of Zimbabwe (SecZim) says it is working on a capital market development plan to be adopted at the national level to shape the direction of the country’s securities trading platforms.
SecZim chief executive officer Anymore Taruvinga said similar frameworks had been successfully implemented in countries such as Kenya and Nigeria.
“That way policymakers, market intermediaries, regulators and investors will have a shared vision that will help guide policy formulation and the overall direction we should take as a country,” he said in an interview.
He said capital markets were essential for the well-being of any economy and that growth in capital markets should be made a priority.
Mr Taruvinga said as a Commission, there has been ongoing work to come up with the plan, however, this work was being funded by a technical partner who has since pulled out before the completion of the process.
“We are now reviving it; we feel it is necessary to guide us as a nation towards a common vision for the capital markets.
“We realise this as other sectors are progressing, mining for example there is a clear vision in terms of targets, the tobacco industry has its own, manufacturing has its development strategy, so we are developing a similar plan in the capital markets,” he said.
Mr Taruvinga said the lack of the plan has been the reason why Zimbabwe’s capital markets have not fully developed.
“It is also why we have seen regulatory interventions because we do not have a common vision, and in our view, the development of such a plan will help even policymakers, guide capital market players themselves, in terms of products, the costing, as well as issues like the cost of listing.
“In addition, the plan will also look at the aspect of financial inclusion, that is whether our capital markets are open to everyone and how we can include everyone,.
Mr Taruvinga noted that one of the key functions of the commission was to encourage the development of free, fair and orderly capital and securities markets in Zimbabwe and it is on this basis that SecZim has been facilitating the growth of the Zimbabwean capital market through registration of new participants and approvals of new capital market products.
“Some of the funds have gone on to list as Exchange Traded Funds (ETFs) and soon enough we expect the listing of a Real Estate Investment Trust Fund (REIT). We have a healthy pipeline of other ETFs and REITs at various stages of registration by SecZim and the expectation is that Trustee services will continue to be on demand in the short to medium term,” he said.
Mr Taruvinga said these new products were also coming at a time the economy is witnessing regulatory and policy changes in the capital markets. He said it is essential to highlight that the Government’s desire is to contain inflation and a runaway exchange rate.
“As the Commission, our other function is to advise the Government with regards to policy and how these impact our capital markets. We take this role seriously and continue to provide the policy proposals in the appropriate platforms.”
Mr Taruvinga said continuous focus on market development also contributes towards the attainment of National Goals such as the National Development Strategy 1 (NDS1) and Vision 2030.
Online Reporter